USD/JPY trades at fresh session highs near 107.30 in quiet day

• USD/JPY trades in a tight range above 107 on Monday.
• Upbeat market mood dampens demand for safe-haven JPY.
• US Dollar Index stays flat below 100.50 at the start of the week.

The USD/JPY pair closed the previous week with small gains a little above 107 and inched higher on Monday. As of writing, the pair was up 0.24% on the day, trading at fresh session highs near 107.30.

Global stocks gain traction on Monday

The upbeat market mood at the start of the week makes it difficult for the JPY to find demand as a safe-haven. Reflecting the risk-on atmosphere, major European equity indexes are gaining more than 2% and the S&P 500 futures are up 1.5% to suggest that Wall Street is likely to open the day sharply higher.

Earlier in the day, the data from Japan showed that the Tertiary Industry Index fell to -4.2% in March and missed the market expectation of 0.2% by a wide margin but was largely ignored by the market participants.

Meanwhile, the US Dollar Index is moving sideways near 100.40 and staying flat on the day to allow the risk-perception to drive the pair’s action. There won’t be any significant macroeconomic data releases from the US in the second half of the day and the pair is likely to extend its sideways grind.

During the Asian session on Tuesday, Industrial Production data from Japan will be looked upon for fresh impetus.

Technical levels to watch for